Responsible mineral supply chains

Minerals - and the supply chains that connect them to world markets - are vital to local economies and necessary for the green transition and strategic industries. They are also linked to human rights abuses, conflict, corruption and environmental risks that, besides harming society, can also disrupt supply and deter needed investment. OECD standards and tools help companies source these important raw materials responsibly so that producing countries benefit and the sector contributes to sustainable development.

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The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas provides government-backed due diligence recommendations specifically to companies in the minerals and metals sector. The Guidance is relevant for all companies across the entire minerals supply chain, from mines to end users. Applying to all mineral supply chains and global in scope, it provides detailed recommendations on how to identify, address and mitigate risks of human rights abuses, conflict financing and other financial crimes in mineral supply chains.

Since its adoption in 2011, the Guidance and its recommendations have been integrated into regulations in Europe, Central Africa, the Middle East and the Americas, in addition to market and exchange requirements in Europe and Asia.

Companies ultimately bear responsibility for due diligence. This entails identifying, preventing, mitigating and accounting for how they address actual and potential adverse impacts on people, planet and society in their own operations, their supply chain and other business relationships.

To guide companies in mineral supply chains from commitment to action, the OECD has developed a series of tools and handbooks to address specific challenges carrying out due diligence. These tools provide companies with step-by-step approaches to embed due diligence into processes and track performance for specific risks and issues in mineral supply chains.

The annual OECD Forum on Responsible Mineral Supply Chains is the leading international event on responsible business conduct in the sector. The forum attracts leaders from businesses, governments and civil society to share ideas, problem solve and set the course for making the minerals sector more responsible and enhance its contribution to sustainable development.

In May 2024, the 17th edition of the Forum reflected on longstanding and emerging priorities with a focus on government-to-government partnerships on minerals critical to the energy transition. Other sessions spanned often overlooked conflict risks, sands and silicates, regional sessions on gold supply chains and policy cohesion in an evolving regulatory landscape.

Context

Due diligence and responsibilities in the mineral supply chain

The mining, transport, and trade of mineral resources can fuel growth and employment, generate income, and promote local development. At the same time, mineral supply chains can be linked to serious human rights abuses, money laundering, bribery, and funding for terrorism or armed groups. The OECD Due Diligence Guidance was developed to help companies avoid contributing to conflict, serious human rights impacts and financial crime through their operations or mineral sourcing practices.

Mineral supply chains explained

Briefing note: Responsible is Reliable

The supply of minerals will need to quadruple for use in clean energy technologies by 2040 to meet the objectives of the Paris Agreement

To produce the minerals necessary for the energy transition, sourcing from conflict-affected or high-risk areas will be important due to their vast reserves. If well managed, these resources can be a source of stability and development in fragile contexts and emerging economies. If not, the rush to obtain transition minerals could make current risks related to conflict, corruption, human rights and environmental damage worse, harming societies and imperiling the energy transition in the process.